The Central Bank received US$370 million from a bank transfer made by China yesterday — the first part of a US$4.7-billion loan that is to be used for public works that had been signed in August.
This first cash injection will be used to renew the Belgrano Cargas railway line that connects 17 of the country’s provinces. The next transfer is scheduled for November and is expected to be of US$600 million. It will be used to build the Néstor Kirchner and Jorge Cepernic hydroelectric dams.
Regarding the following transfer, an insurance policy will be signed on October 20 with the Sinosure firm, so the rest of the remaining transfers are guaranteed and allowed to be transferred freely. In November, President Cristina Fernández de Kirchner plans to visit the country (the date is expected to coincide with the next transfer).
The financial operation is viewed as a positive gesture on the part of the Chinese government, during a difficult period for Argentina as it is closed off from international financial markets.
At the beginning of the month, the director for the Chinese Commission of Development and Reform had expressed his support to Argentina, promising that “what happens in the rest of the world will not affect our decision to continue collaborating and working with Argentina because we have a strategic relationship.
Date: September 25, 2014